Melbourne Music Venues Face Difficult Times with Increasing Insurance Premiums

Melbourne's vibrant live music scene is under threat as local venues are encountering massive hikes in insurance costs. These rising expenses are putting considerable financial strain on the establishments, with some on the verge of shutting down, while others are imposing strict rules such as prohibiting dancing while holding a drink.

Exorbitant Insurance Rates

Owners of live music venues across Melbourne are reporting severe spikes in liability insurance. For instance, one venue owner in East Brunswick saw her insurance costs jump from just under $3,000 annually to nearly $30,000. Another venue owner, Liam Matthews, has been hit with a $60,000 yearly insurance bill, which is a substantial increase from the $10,000 he paid only two years prior. These skyrocketing rates have compelled venue owners to find ways to cope, some even taking pay cuts to manage the bills.

New Restrictions Implemented

The increased costs come with new insurance policies enforcing strict measures, leading to unusual and disruptive rules within the music venues. At The Old Bar in Fitzroy, for example, patrons are now greeted with signs stating 'No dancing whilst drinking,' a rule that is less about managing behavior and more about reducing potential liabilities such as broken glass or slip-and-fall accidents.

Appeal for Intervention

Many venue owners are advocating for government support and legislative reform. They plea that live music venues receive fairer insurance policy categories, as they are currently lumped together with higher risk establishments like nightclubs, which does not accurately reflect the actual risk associated with typical live music events. The pressure is on for solutions that would help manage risks without stifling the live music culture in Melbourne.

Uncertain Futures

While some venues struggle to hold on, others have had to succumb to the financial pressures. Whole Lotta Love in East Brunswick has already closed its doors due to the untenable situation. The industry-wide issue is further complicated by other factors including climate disasters and global economic conditions that have insurance companies adopting more conservative and expensive policies.

Industry and Government Response

Organizations such as Music Victoria and the Australian Live Music Business Council are voicing the challenges faced by venues, stressing that the majority are well-managed and safe. The Insurance Council of Australia acknowledges the tough market and expresses its intention to work towards better affordability. The federal government is also monitoring the situation, seeking ways to support the live music venues through various initiatives.

insurance, venues, music